Love it or, List it

My wife is now on team list it, so I think it's a forgone conclusion that we're going to be selling our house some time in the near future. The big difference between what my wife wants in a new house and what I want is that I'm happy to buy somewhere a little cheaper that has potential that we can renovate and make ours. My wife doesn't want that and is now talking about building a place on a block of land in a new estate. I'm open to that idea but still have my reservations about it as the new block sizes are really quite small, around 450sqm, where our current block is 600sqm, but we want a bigger house so we'd have basically no yard space.
We went for a quick drive around one of the new estates this afternoon after work and my wife really quite liked it. The houses were all quite large and many looked like they had no backyard at all. I think that is the only real argument for building on a new block, we could make sure that we had a design that works for us and keeps as much yard space and distance from the neighbours as possible.
I also want to look further in to renovating or extending our existing home. If we are willing to sell the house and move on to somewhere new, then we must be willing to knock down the deck that we built and extend the house, or even do a complete knock down rebuild of the whole home. If we moved, we'd have a new place and a bigger mortgage, the same could be true for a knock down rebuild or a major extension.
We do like the location we're in as it is close to everything and we've already promised my son that if we did move that he wouldn't have to change schools, so we won't want to move too far from where we currently are.

Bomber
things are escalating quickly